Industry Analysis & Industry Trends
The Leather, Hide and Skin Wholesaling industry is estimated to contract over the five years through 2015-16. This is due to volatile leather and livestock prices in addition to changes in downstream leather product manufacturing industries, such as leather furniture and footwear. Bovine leather is the largest product category in the industry, accounting for approximately 75.2% of revenue. As a result, the industry is highly dependent on trends and activities in downstream leather product manufacturing industries. Increased competition from substitute products has negatively affected industry growth over the past five years, though higher purchasing and selling prices drove industry revenue higher in some years... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the industry are relatively low due to low start-up costs and limited government and licensing requirements. It is generally inexpensive to establish a new leather wholesaling company, while additional set-up costs can be minimised for new firms. These include transportation and associated costs, which can be outsourced. However, it can be more difficult for new firms to build and develop relationships with leather, hide and skin tanners and dressers. These suppliers may already have well-established relationships with other wholesalers.
There is a moderate level of vertical integration in this industry. Some leather tanners are also leather wholesalers. The.. purchase to read more